With less than a fortnight left for commencement of repayment of instalment dues with accumulated interest (for the deferment period of three months) to financial institutions, industry associations and trade bodies, while expressing their anxiety have appealed for extension of the moratorium period for MSMEs by another nine months.
While hailing the various announcements made by the government in the form of supportive financial measures for MSMEs to ease liquidity, Tirupur Exporters’ Association (TEA) President Raja M Shanmugham said with the extension of the lockdown period up to May 31, industry is in dire straits as activities had come to a halt before being partially resumed, leaving the house in total disorder.
“MSMEs are in no position to repay interest at this juncture. We feel that revival could take place only after another six months, and that too, by addressing the issues one by one,” he said.
The non-MSME units (which could be categorised just above the MSME category, but not in the league of big corporates like Reliance Industries, or Grasim Industries) have also been facing the liquidity crisis; they certainly need the support of the government to tide over the crisis, the TEA President said.
Further, to enable the MSME units come out of the crisis, a one-time restructuring of debt should be made available to all those in need. But this restructuring should not result in asset downgrade, Shanmugham said